GOP Plan Would Give GM, Chrysler Shares To Every US Taxpayer
05 June 2009 - 3:34AM
Dow Jones News
U.S. Congressional Republicans introduced legislation Thursday
to convert the government's investment in General Motors Corp.
(GMGMQ) and Chrysler LLC into company shares that would be
distributed to every American taxpayer.
The legislation, pushed by four Republican senators, would
subvert the Obama administration's plan for the U.S. government to
take a 60% ownership stake in GM and 8% in Chrysler. Instead of the
government holding the shares, the Treasury secretary would be
required to distribute GM and Chrysler stock to the roughly 120
million Americans who submitted tax returns for 2008, said Sen.
Lamar Alexander, R-Tenn., the proposal's author. The secretary
would have one year to complete the task once GM emerged from
Chapter 11 bankruptcy.
"This is the fastest way to get the stock out of the hands of
Washington and back into the hands of the American people who paid
for it," Alexander said.
The bill reflected growing opposition by Republicans to the
administration's car-industry rescue. House Republicans in recent
weeks have called for hearings on the use of financial-rescue funds
on GM and Chrysler. This week, Rep. Jeb Hensarling, R-Texas, who
sits on the congressional panel that oversees the Troubled Asset
Relief Program, said the panel will hold a hearing on the matter
this summer.
The legislation to give Americans stock in GM and Chrysler has
the backing of three other Senate Republicans: Minority Whip Jon
Kyl of Arizona, Robert Bennett of Utah, and Judd Gregg of New
Hampshire.
Alexander said he hadn't presented the plan to the Obama
administration. A Treasury spokeswoman wasn't immediately available
for comment Thursday.
Giving ownership stakes of the auto maker to the government will
lead to an endless stream of hearings on Capitol Hill that will
preclude the companies from making sound business decisions without
pressure from politicians, Alexander said. Giving the stakes to
taxpayers would return the company to the marketplace, he said.
-By Josh Mitchell, Dow Jones Newswires; 202-862-6637;
joshua.mitchell@dowjones.com